Refer to Figure 5-1. The demand curve A indicates that a.consumers can purchase any quantity they want regardless of the price. b.there is no change in quantity demanded as the price changes. c.the smallest price change will cause consumers to change their consumption by a huge amount. d.the smallest price increase will cause consumers to switch to the producer with the lowest prices e.price elasticity of demand is equal to 1. Figure 5-1P3P2P1Q, Q2 Q3 Q4 Qs Q6

Demand curve A is perfectly inelastic demand curve. Here the elasticity would be zero.

Answered: The demand curve A indicates that

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Refer to Figure 5-1. The demand curve A indicates that

	a.	consumers can purchase any quantity they want regardless of the price.
	b.	there is no change in quantity demanded as the price changes.
	c.	the smallest price change will cause consumers to change their consumption by a huge amount.
	d.	the smallest price increase will cause consumers to switch to the producer with the lowest prices
	e.	price elasticity of demand is equal to 1.

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